Calgary Hospitality Market Report

Select segments outperform. Corporate travel has been key in driving hotel performance over the past year. Diversification and the energy sector, in particular, have boosted Calgary’s economy, supporting the segment and benefiting mid- to upper-scale hotels downtown. The expansion of the BMO center has also boosted group and corporate demand within the hotel class. Looking ahead, due to growing economic uncertainties, demand from this travel base may moderate, and fundamentals are likely to recalibrate after robust gains coming out of the pandemic. Though some challenges exist, the long-term outlook for corporate hotel room demand is generally favourable. Lower oil prices pose a downside risk, but diversification, as well as increased production from the Trans Mountain Pipeline and the potential for major energy infrastructure projects, maintain an optimistic outlook.